Bulletin: FL000020

Date:
October 21, 1992
To:
All Florida Offices and Agents
RE:
Fraud Schemes William Michael Adkinson and Robert L. Collins Adkinson's Development Group

Dear Associates:

Recently the two men and the corporation recited above were prosecuted on a land fraud case. The case particularly involved "flipping" of properties in that the flipping was done in order to inflate property values in order to defraud several banks to lend money on the property with the inflated values being sufficient to divert money to the owners so that they eventually ended up with 200 acres of beachfront land free and clear of liens. The two men have been convicted an sentenced to nine years in prison each pending appeal.

You are cautioned first to avoid doing any transactions with these names in the chain of title. Should you come across any such transaction, do not undertake these transactions without approval of either Harold Hickman or the Legal Department.

You are further cautioned to be extremely careful in any transactions that involve 'flipping" of land as there is a possibility that we may later be accused of participating in a fraud on a bank even though that would not be the case. Accordingly, if you are asked to handle any transaction which involves a "flip", it is imperative that the lender involved be advised in writing that there is a "flip" and that the lender acknowledge it has been advised of a "flip", has examined the transaction and wishes to proceed. There is nothing inherently improper about a "flip". The only issue being addressed is that the transaction be done with knowledge of all parties involved, most particularly a lender we are insuring or the second purchaser in a "flip".

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
None
Underwriting Manual:
6.38 Fraud
Exceptions Manual:
None
Forms:
None